If you are thinking about jumping into the property investment market in 2023 but are currently second guessing whether it is the right time, I get it. Everything you seem to hear and read is extremely doom and gloom. I’d like to shine some light on the reality of the market right now and why we see a lot of opportunity. The questions that I get asked most often are probably the ones you’re thinking, so let’s start there.
What is the best advice you can give someone to get their investment property journey started in 2023?
Without doubt, the number one message is to take action. In 15 years of helping investors, I found that people are always researching, trying to find the perfect time. The “perfect time” doesn’t exist. You can’t make money from property if you don’t buy it.
With the benefit of hindsight, if you could have bought it 35 years ago, would you have done it? Absolutely. What if I told you before you bought 35 years ago that negative gearing would have been removed then it would have come back. Then we would have had the recession that we had to have, a GFC, September 11, Covid, Asian Financial Crisis where stock markets lost 60% of their value. Right? You wouldn’t have done it. How many millions would you have missed out on? These world events are always going to happen.
There’s never going to be a perfect time that ducks will never line up. If that was the way that it worked, everyone would do it. But they don’t. So take action. Take a long term approach and protect your cashflow.
Protecting your cashflow is easy, when you know how. With many locations in Australia currently in a rental crisis and rents up as much as 28% in the last year with tax benefits for most smart investors reaching $15,000 per year per property. That’s how to protect yourself against the rate rises. If that sounds attractive, talk to us and we can work with you on taking a proactive approach to your investment and financial future.
What are your top 3 tips for investing given the current state of the economic climate?
~Novel Serialisation: Heavens Fire~
-
Don’t listen to everything they say on the news – It’s really important to understand that the media’s motivation is to sell papers and clicks through boom and bust headlines. The reality of the property market is very different to what the general media portrays. There are a lot of positives right now.For example, the vacancy rates are at record rental lows. And lower sentiment means you can buy better with reduced competition. And not all property is the same. Some areas have seen 15% drops and others have seen increases. We invested in the latter, which is why the right strategy can outperform the market like we’ve done consistently for nearly 15 years.
-
Seek professional help – how do you know if the decision is a smart one for you? Your partner’s cousin’s boss bought an investment property and it’s great and you should buy there too. That is fantastic for them. But it may not be the right type of investment for you. Instead, have a chat with us. We can understand your borrowing capacity, your financial goals and how you can start your investment property journey in a way that doesn’t compromise your lifestyle. At OpenCorp, we have a full team of experts and analysts here ready to help you make a smart choice when it comes to your financial future.
-
Don’t be emotional about it – This property is not your forever home. You don’t have to imagine your life here.. You don’t need to see how far the commute to work will be or whether your couch will fit. This house isn’t for you. It is for your renters. Think with your head and not with your heart. This could mean the difference between you buying one investment property, or building a portfolio of two, three, four or even more properties that will one day allow you to buy that dream home. Be a smart investor and take action. You’ll look back in a few years and be glad you did. What are your biggest concerns about entering the investment property market?
By Michael Beresford – Executive Director – Property and Investment Services, OpenCorp
Bio: Michael is committed to sharing his passion for property and investment to deliver outstanding returns for everyday Australians. Michael has helped over 2,000 OpenCorp clients add $837 million in value to their property portfolios.
Having purchased his first investment property at 25 he then proceeded to buy four more properties on a single income over the next five years, which provided him with a solid foundation from which to build his investment portfolio.
The most satisfying part about what he does is empowering clients, and seeing them grow their portfolio and achieve the wealth they didn’t know was possible when they began their investment journey. Michael’s commitment to sharing his passion for property and investment experience to deliver outstanding results for everyday Australians.
Aside from guiding and advising our clients at OpenCorp, Michael is also involved in helping the company maintain its high level of growth.
